What is the First Home Buyer scheme in NSW, and how does it work?

If you’re a first-time buyer looking to enter the property market, it can be pretty daunting. Luckily, assistance is available in Australia to make homeownership more accessible to first-home buyers.

Some schemes are available at the federal government level. These include:

First Home Super Saver Scheme (FHSS) - Voluntary contributions to your superannuation, which can be used to purchase a first home.
Australian Government 5% Deposit Scheme (formerly the First Home Guarantee) - Eligible first home buyers can buy with a 5% deposit and no LMI. Its Single Parent Stream allows eligible single parents to buy with a 2% deposit.

Along with this, you'll find that each state government will provide their own version of:

First Home Owner Grant (FHOG) - Each state and territory runs its own grant, with different amounts and property value thresholds. The ACT has no grant.
Stamp duty concessions.

If you want to purchase a home in Sydney or elsewhere in New South Wales, you might want to know how these Australian government and NSW government schemes apply to your financial situation.

First home buyers in NSW

There are currently several specific schemes available to first-home buyers in NSW. These are as follows:

First Home Buyers Assistance Scheme

What is it?

Exemption from paying stamp duty, also known as transfer duty (may be full or partial).

Main eligibility requirements

You must be over 18 years of age.
At least one applicant is an Australian citizen or permanent resident.
Must not have previously owned property in Australia.
For new and established homes: The property value must be less than $1,000,000 (to receive a concessional rate on transfer duty) or $800,000 (for a full stamp duty exemption).
For vacant land: The land value must be less than $450,000 (to receive a concessional rate on transfer duty) or less than $350,000 (for a full exemption).
At least one of the first home buyers must move into the home as a principal place of residence within 12 months of buying the property and live there for six continuous months.

Other requirements can be found here.

First Home Buyer Choice

What is it?

From November 2022 to 1 July 2023, first home buyers in NSW could opt to pay annual property tax instead of the upfront cost of stamp duty.
This scheme is no longer available, though any first home buyers who opted in remain grandfathered into the scheme.

Main eligibility requirements

You must be over 18 years of age.
At least one applicant is an Australian citizen or permanent resident.
Must not have previously owned property in Australia.
The property value had to be below the $1.5 million threshold.
At least one of the first home buyers must move into the home as a principal place of residence within 12 months of buying the property and live there for six continuous months.

Other requirements and guidelines can be found here.

First Home Owner Grant (New Home)

What is it?

You can receive $10,000 towards your property purchase. This can also be used in addition to the First Home Buyers Assistance Scheme benefits.

Note: these details refer specifically to the NSW Gov application of the First Home Owner Grant (FHOG), also known as the First Home Buyer Grant, which has different restrictions and benefits to other states.

Main eligibility requirements

You must be over 18 years of age.
At least one applicant is an Australian citizen or permanent resident.
Must not have previously owned property in Australia.
In NSW, this must be used on a newly built or significantly renovated property OR vacant land with plans to build.
For a newly built or significantly renovated property: The purchase price must not exceed $600,000.
For vacant land with a contract to build: Combined value of the land plus the value of the building contract for the home must not exceed $750,000.
At least one of the first home buyers must move into the home as a principal place of residence within 12 months of buying the property and live there for 6 continuous months.

Find out about more eligibility requirements

Shared Equity Home Buyer Helper (closed)

The NSW Shared Equity Home Buyer Helper closed to new applications on 30 June 2024. The main shared equity option for NSW buyers is now the federal Help to Buy scheme, which opened on 5 December 2025. The government can contribute up to 40% of the price of a new home or up to 30% of an existing home, with a minimum 2% deposit. Help to Buy is open to Australian citizens only, and income and property price caps apply.

These schemes can’t be used for investment properties - buyers must intend to live in the property in question. Note that if you are a member of the Australian Defence Force, the requirement to live in your established home for six continuous months may be waived.

Below are how some of the other national assistance schemes apply to residents of NSW.

Other First Home Buyer Schemes Available to NSW Residents

To ease the home loan process for first-home buyers, NSW residents are also eligible for federal government schemes. These may make it possible for first-home buyers to access low-deposit home loans or avoid paying lenders mortgage insurance (LMI).

Australian Government 5% Deposit Scheme

What is it?

Eligible first-home buyers can buy a home with as little as a 5% deposit. The government guarantees the remainder. Places are uncapped.
You will not need to pay LMI.

Main eligibility requirements

You must be over 18 years of age.
Must be an Australian citizen or permanent resident.
Must be a first home buyer, or not have owned property in Australia in the last 10 years.
Must intend for this to be the principal place of residence.
There are no income caps.
The loan must be from a Participating Lender.
Must have a 5% minimum deposit.
For Sydney and regional centres: Property value must be no more than $1,500,000.
For the rest of NSW: Property value must be no more than $800,000.

Find the rest of the eligibility requirements here.

First Home Super Saver Scheme

What is it?

A scheme allowing you to contribute voluntarily to your superannuation, specifically for first-home buyers. $15,000 of voluntary contributions per year can be used, up to $50,000 in total.

Main eligibility requirements

Must not have previously owned property in Australia.
You don't need to be an Australian citizen or resident.
You can be under 18 years old to make voluntary contributions to your superannuation, but you must be over 18 years of age to make an FHSS request.
You must be intending to purchase property in Australia.
You will occupy the property you buy or intend to as soon as practicable.
You intend to move into the home within 12 months of purchase (or as soon as practicable) and live there for six continuous months.
You will also need to cover the upfront costs.

More requirements can be found at the Australian Taxation Office.

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What is the Single Parent Stream (formerly the Family Home Guarantee)?

The Single Parent Stream is part of the 5% Deposit Scheme and is only relevant to single parents, who can buy with a 2% deposit. The difference with this scheme is that eligible single parents may have owned property before and still qualify for the scheme.

Places are uncapped and there are no income caps.

Eligibility requirements are as follows:

Must be an Australian citizen or permanent resident.
Must be older than 18 years of age.
Must be single (i.e. no marriage or de facto partnership).
Must have a dependent child/children.
Must not currently own a home (may have previously owned a home).
Must intend to be an owner-occupier of the property once purchased.
Must have a minimum 2% deposit.
For Sydney and regional centres: Property value must be no more than $1,500,000.
For the rest of NSW: Property value must be no more than $800,000.

What is LMI and will I have to pay it?

LMI stands for Lender’s Mortgage Insurance, and you will have to pay it if your deposit on a property is below 20%.

After stamp duty, which you may receive a concession on as a first-time home buyer, LMI can be one of the biggest upfront costs in purchasing a property. Low deposit home loans may also attract higher interest rates, as they tend to be riskier for lenders.

This is one of the things that makes the 5% Deposit Scheme so attractive: it allows eligible buyers to pay a lower deposit, without having to pay LMI.

Note that you also may not have to pay LMI if you work in certain industries: some lenders waive LMI for eligible medical, legal and finance professionals, usually up to a set LVR.

Is it cheaper to pay stamp duty or annual property tax?

Previous to July 2023, the First Home Buyer Choice scheme allowed first home buyers to choose between the upfront cost of stamp duty or the ongoing annual property tax.

As of July 1, 2023, the First Home Buyers Assistance Scheme replaced the First Home Buyer Choice scheme. Under the new policy, there are no land tax exemptions, but first home buyers now pay no stamp duty on homes up to $800,000, and get stamp duty concessions on homes priced from $800,000 to $1 million.

You can use our NSW stamp duty calculator to work out your approximate stamp duty costs.

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